There is no requirement to form new HUF and obtain new PAN
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My father had a Hindu Undivided Family (HUF) bank account and a PAN associated with it through which he paid all taxes on our agricultural income and rental income. I am married and staying with my husband and a 3-year old son. My father passed away three years back leaving behind me and my mother. We are unsure about how to continue with the HUF PAN after his demise. Who would become the Karta with only two surviving female members. As of now we are still paying taxes using the old HUF PAN. Can we open a new HUF account with a new PAN with my mother being Karta and my husband and I being members to HUF? Can a minor grandson have a role in such an arrangement? Or, can we continue using old PAN? However, we are not allowed to open any new bank accounts using that PAN. How should we manage this?
Since only persons who have descended from a common male ancestor can become coparcener, your mother can not be treated as coparcener so she cannot become a Karta of the HUF. Earlier only a male member of the family who was treated as a coparcener, could become Karta of an HUF but after the amendment of Hindu Succession Act in 2005, daughters have been put on par with sons making them also coparceners. So after the amendment a daughter can also become Karta of an HUF. So you can continue with your father’s HUF and become Karta of the HUF. There is no requirement to form new HUF and obtain new PAN. Since only persons who have descended from a common male ancestor can become coparcener, your husband and son shall not become either coparcener or member of the HUF. You need not open a new bank account to carry on the financial transaction and continue with the existing bank account. You have to submit proof of you being a daughter of deceased Karta of the HUF to record your name as Karta of the existing HUF. You may face some problem in doing so because bank employees are not so well versed with the HUF laws and you may have to explain them the provisions of the amended provision of the Hindu Succession Act, 1956. The case of Mrs. Sujata Sharma Vs Shri Manu Gupta decided by the Delhi Court on 22th December 2015 can help you in this regard where the Delhi High Court has held that a daughter can become Karta of an HUF.